1, advantages:
(1) Public Offering of Fund is the most transparent and standardized fund. Public Offering of Fund has strict regulations on the qualifications of fund management companies and the custodians of fund assets. The fund custodian is actually a bank in China, because its registered capital must reach 8 billion yuan. Closed Public Offering of Fund also publishes its net asset value once a week and its portfolio once a quarter.
(2) Since the public offering of funds is conducted in broad daylight, it is also strictly supervised by the regulatory authorities. Therefore, on the whole, Public Offering of Fund's assets are safer and more acceptable.
(3) Private equity funds are relatively small, while Public Offering of Fund is relatively large. Public Offering of Fund is transparent, and its performance will be published weekly and monthly. Private equity funds are not publicly audited and disclosed, and it is difficult for ordinary people to know. Just like depositing in a bank, the interest given by the bank is good, and the subscription funds are extremely increased, so it is easy to make the public offering bigger.
2. Disadvantages:
(1) Due to the high liquidity risk and limited investment varieties in Public Offering of Fund, the fund products lack innovation.
(2) The rapid development of the fund industry and the relaxation of policies encourage the innovation of fund products, and fund companies compete to launch new products to attract investors' attention. From the sales situation, investors' recognition of fund innovation is also significantly higher than that of fund products lacking innovation.
(3) Due to the safety and risk requirements of institutional investors and individual investors such as social security funds, low-risk products are generally favored, prompting fund companies to pay attention to the development of products such as capital preservation funds and money market funds. However, compared with the mature foreign fund market, there are still some problems in China's fund market, such as the same fund holdings, the unclear characteristics of newly raised funds, and insufficient varieties.
Second, the advantages and disadvantages of private equity funds:
1, advantages:
(1) Private equity funds are generally closed-end partnership funds and are not listed and circulated. During the closed period of the fund, the partnership investors can't withdraw the funds at will, and the closed period is generally 5 years to 10 years, so the operation period is stable and there is no pressure to redeem the funds.
(2) Compared with the strict information disclosure requirements in Public Offering of Fund, the requirements of private equity funds in this respect are much lower, and the government supervision is relatively loose, so the investment of private equity funds is more concealed and professional, and the return on income is usually higher.
(3) The success of fund operation is closely related to the fund manager's own interests, so the fund manager has a strong professional consciousness and can attract specific investors with his unique and effective operation concept. The cooperation between the two sides is based on a kind of trust and contract, so there is little moral hazard.
(4) The investment target is more targeted, and the investment service products can be customized for customers to meet their special investment requirements. For example, Soros's Quantum Fund not only invests in the global stock market, but also invests heavily in foreign exchange and futures, creating a high rate of return.
(5) Simple organizational structure, flexible operating mechanism and high freedom in daily management and investment decision-making. Compared with the complicated bureaucracy, private equity funds have obvious competitive advantages at the critical moment when opportunities are fleeting.
2. Disadvantages:
(1) Non-public offering of shares has poor liquidity and cannot be publicly transferred and sold in the market; Due to the non-public way to raise funds, the entry threshold is high, and the target is generally a few specific investors. ? In this way, if investors withdraw their funds or have other major changes, the risk is even greater.
(2) Similarly, because the target is a few investors, the information disclosure is relatively loose, and there is a danger of being negotiated and controlled.
Extended data:
The so-called funds in China should be called securities investment funds accurately, such as Dacheng, Huaxia, Jiashi and Bank of Communications Schroeder. These Public Offering of Fund are strictly supervised by the CSRC, and their investment direction and proportion are strictly restricted. Most of them manage tens of billions of dollars.
Private placement is strictly restricted in China, because it can easily become "illegal fund-raising". The difference between the two is whether to raise funds for the general public and whether the ownership of funds has been transferred. More than 50 people raise funds and transfer them to personal accounts, which is regarded as illegal fund-raising. Illegal fund-raising is a very serious economic crime that can be sentenced to death, such as Wu Ying in Zhejiang, Tang Wanxin in Delong and Madoff in the United States.
Private real estate investment funds (few now, such as Jincheng Capital and Xinghao Investment), private equity investment funds (that is, investing in the equity of unlisted companies, PE targeting IPO, such as CDH, Hony, KKR, Goldman Sachs, Carlyle and Han Hong) and private venture capital funds (that is, VC with high risks, such as Lenovo Investment, Softbank and IDG).
Dacheng, Jiashi, Huaxia and other fund companies in Public Offering of Fund are all securities investment funds, and they can only invest in stocks or bonds, but not in unlisted company equity, real estate or venture enterprises, while private equity funds can.
Baidu encyclopedia-cemetery fund
Baidu encyclopedia-private equity fund